This Morgan Stanley podcast episode discusses the surprisingly muted market reaction to the new U.S. administration's trade policy announcements. Andrew Sheets, head of corporate credit research, argues that while the flurry of tariff announcements has caused significant uncertainty for businesses (evidenced by the lowest U.S. M&A activity since 2015), it hasn't yet impacted credit spreads. He suggests this could be a temporary positive for lenders, as delayed corporate activity due to uncertainty might lead to lower debt levels and tighter spreads. However, he notes that investment in sectors like AI data centers remains strong. The podcast concludes by encouraging listeners to provide feedback.
